Skip to main content

Market Report

Philadelphia Multifamily Market Report

2Q 2022

Wave of Supply Additions Hit Central´╗┐ Philadelphia;
Tax Amendments to Influence Future Builds

Gap narrows between suburban and urban assets. The average effective rent in the urban core ended last year just $700 above the suburban equivalent, down from a $1,000 difference prior to the pandemic. Development trends may see this gap continue to narrow. Additions slated for Center City and adjacent zones in 2022 could translate to more muted rent gains here. Still, much of this supply pressure will likely be offset by a return to the urban core, where a year-over-year vacancy compression totaling 460 basis points was observed in March 2022, the highest of any submarket. Additionally, job growth in office-using sectors should support leasing in existing properties.
MM Texture Background